Shanghai A-share Index: 2,539
When the Shanghai A-Index closed at 2,378, we had suggested the index would have a breakout from the 200-day moving average and a follow through to 2,523. Last Friday, the index did end up at 2,539 after penetrating the previous high of 2,523.
Nonetheless, the presence of the negative divergence of MACD on the chart below means that upward momentum may slow down.
In other words, the odds are increasing that the index may see a pullback. Unless the pullback breaches the newfound support at 2,353, the index would likely resume the momentum to head towards the congestion zone near 2,860.
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